Titagarh Rail shares decline post Q4 results; Stock down significantly from 52-week high

Shares of Titagarh Rail Systems Ltd. were declined in early trade on Monday, June 1, after the company reported a mixed set of fourth quarter earnings over the weekend.

Titagarh Rail reported a net profit for the quarter at ₹53.96 crore, compared to a net loss of ₹122.4 crore that the company reported last year.

During the base quarter, Titagarh had reported a net loss due to exceptional provisions of ₹157.5 crore for bank guarantees and collaterals for its Italian subsidiary Fierma. The Italian subsidiary had reported a loss of ₹948 crore last year.

The base quarter also included an ₹84 crore loss via Shivalik Mercantile, which is Titagarh's share of Firema's actual factory and business losses.

Titagarh Rail In Q4

Titagarh Rail's revenue in the March quarter declined by 12.9% to ₹875.4 crore from ₹1,005.6 crore in the previous year.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) declined 4.4% to ₹97.3 crore in the March quarter from ₹96.56 crore last year, while margins stood at 11% from 10% last year.

The company saw strong margin improvement in its passenger rail business, while the freight business turned out to be a drag yet again.

Titagarh Rail's passenger rail systems business revenue increased 91.9% to ₹173.3 crore from ₹90.31 crore. Its EBIT margin expanded to 19% from 4% in the previous year.

Revenue for the freight rail systems business declined 24.7% to ₹685.2 crore from ₹910.1 crore in the fourth quarter last fiscal. Its EBIT margin was unchanged at 13%.

The shipbuilding business' revenue increased 225% to ₹16.9 crore from ₹5.2 crore in the previous year. Its EBIT margin improved to -34% from -160% in the year-ago period.

Shares of Titagarh Rail Systems were down 0.4% at ₹823.25 apiece in early trade on Monday. The stock still trades well below its 52-week high levels, even as it has recovered from the lows of the year, thereby trimming its year-to-date losses down to 6%.

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